strategic objectives

The Secret of Big Data Adoption

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Despite the conceptual understanding of Big Data, many people are still trying to figure out how to put the concept in practice. There is no doubt that data is spreading quickly and sources are many. Also, proper usage of all data available can help organisations to stay ahead of competition, however making the case to include Big Data as part of the strategic investments needs a bit more consistency.

I have written before about how How Big Data can help Strategy Management, now let’s see how Strategy Management can help unleash Big Data investments.

If data is really valuable, what defines its value is definitively the Enterprise Strategy.

Whatever long-term aspirations of achievements will establish the sources for Use Cases so much required for the implementation of relevant, sustainable Big Data solutions.

“In order to demonstrate true business value of Big Data, you will need to make a pitstop at the strategy management model to understand what exactly is required in terms of improvements of Operational Efficiency and to be able to quickly and easily drive competitive innovation that translates immediately into some sort of advantages that benefits your organisation”.

So based on the formal strategy definition: You want to gather information and insights from all of your data to be able to pull it together to be able to quickly and easily drive business value that translates immediately into some sort of advantages that benefits your organisation.

For instance, by following the well-known methodology of the Balanced Scorecard, created by Drs. Kaplan-Norton in early 90s, you will find significant information at the core of the enterprise strategy regarding tangible and intangible assets translated into a measurable framework of Goals and Key Performance Indicators (KPIs)that comprise in a holistic way, at least the four perspectives of businesses: financial, market & customers, internal processes and enablers of learning and growth – All business perspectives are driven by valuable data analysis and strategic initiatives.

Each business perspective along with its challenging strategic objectives, may uncover precious use cases for Big Data Analytics, which certainly will benefit the organisation from using Real-Time, Predictive Applications now available throughout a wide range of new technologies such as the Hadoop ecosystem, machine learning, graph databases etc..

My suggested approach is to leverage more on the expertise of Strategy Management to promote solutions of Big Data Analytics for dramatically improve operational efficiency as well as to drive competitive innovation, in perfect harmony with the current organisational strategy execution model.

This way, it will give technology a “business touch” required for making the Big Data investment meaningful for the enterprise. You can simultaneously speak both languages of IT, when it comes to modern infrastructure to tackle the new challenges of a data-driven society, and BUSINESS MANAGEMENT that is always hungry for continuos improvements.

Next time you think about Big Data, try to start figuring out what is your current enterprise strategy and what are the imposed challenges in it that can be solved with Data Analytics. I’m sure you will see how everything make sense.

  Head of Big Data Sales for UAE and Gulf at SAP

Let’s engage together in discussions about Big Data Use Cases originated from enterprise’s Strategy Management Models.

4 common pitfalls in linking HR with Strategy

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The 4 common pitfalls 90% of organizations make, and what you can do to avoid them

By Fares Hillo – Consulting Manager – at ShiftIN Partners.

This article is an abstract from the whitepaper ‘How to bring HR to the Strategy Table’ co-authored with Carlos Guevara, Partner at ShiftIN Partners that will be published in June 2014.

We’ve all either heard this complaint before, or said it ourselves; “HR isn’t supporting the strategic growth of our organisation”.

Why?

In fact, the very first line on Wikipedia’s page for Human Resource Management is: “…a function in organizations designed to maximize employee performance in service of their employer’s strategic objectives”! Isn’t it strange then that so many organizations and the people within them feel the same about their HR function? We’ve all become accustomed to playing our role and almost working in silos. Your average employee rarely gets a chance to see the bigger picture, even if they ARE part of the ‘core business’. Imagine this problem in a government entity where bureaucracy rules supreme…

HR is no different. Actually, it may be worse. As a support function, they are expected to deal with ‘managing’ the employees and not interfere with their ability to carry out their responsibilities. But in the dynamic landscape of 21st century business, a function – certainly one as critical as HR – can’t afford to turn its cogs without realizing that the machine it’s turning is an uncoordinated mess.

Yet HR doesn’t sit on the strategy table.

Your typical well rounded strategy includes a neat section about ‘organisational enablers’ – nice and clear somewhere at the bottom of your strategy, ‘driving’ the core business above it. The problem with this is that it still keeps HR at arm’s length. The organisation see’s that HR has its part to play, and HR sees the same thing, and everyone understands what they have to achieve.

But what about truly embedding HR in the heart of executing the strategy?

This has been a common failure in most organizations, and while many have mature and ‘evolved’ strategy know-how and capabilities – they still struggle with bringing HR onto the strategy table. Many of the fixes require a deep analysis into the culture and operations of the organisation in question, but there are some pitfalls that can be easily avoided with a little careful planning and approach. So consider the following:

PITFALL # 1: Is your HR planning calendar synchronised with the Strategy Calendar?

The other day when I was discussing the strategy with one of our clients, we finished the discussion agreeing that we needed to invest in growing the sales force in order to tackle some of the untapped opportunities. After reaching this conclusion we felt relaxed, until somebody raised her hand and said: ‘but we have already defined our manpower plan for next year, 2 months ago!!

How do you know that something is not working well? Look for the following symptoms:

HR asks departments to define their manpower needs for next year before these departments have  had the chance to review their departmental strategies.
The strategy department doesn’t involve HR during the strategy formulation process.
Similarly, HR doesn’t involve Strategy Department when updating their HR plans.

PITFALL #.2: Competency management is not aligned towards the strategic outcomes

Let’s say that you have a successful restaurant and, after a strategy session with your shareholders, you have envisioned transforming your restaurant into a franchise that offers a brand new value proposition to its customers. Do you think your future company will require the same competencies that you see now in your staff, or will different capabilities be needed to deliver this value?

You know that you have this problem if you perceive the following symptoms:

You have a competency framework but it reflects the competencies needed in the past but not those needed in the future.
You have a competency framework but you lack the tools to measure the proficiency levels and accurately identify the competency gaps.
You are able to measure the competency gaps but your training plan is unable to address them.
Or, you don’t know which competencies your strategy will need at all!

PITFALL # 3: Personal Objectives not connected to Organizational Objectives

Research shows that the vast majority of managers believe that individual objectives are helpful to determine task importance, yet how many times have we heard managers complain about the bureaucratic, template-filling exercise that objectives setting has become? Their solution is to simply recreate the basic core responsibilities of their employees, based on the job descriptions, as their personal objectives without any kind of alignment with the corporate and function strategies.

How do you know if you have this problem? Look for the following symptoms:

Personal goals are not aligned, and sometimes contradictory, to the organisational strategy.
Managers are not required to provide justification (in the form of strategic contribution) when setting personal objectives.
There is low level of engagement from managers while setting objectives and providing coaching and appraisal. They don’t seem to see the value in doing it…

PITFALL #4. Rewards system doesn’t incentivise the right behaviours

Last but not least. HC frameworks should foster the right organisational culture to enable the strategy. One of the key aspects of shaping the right culture is the incentives. The way an organisation rewards its employees has a tremendous effect on driving behaviors, and ultimately performance.

How do you know you have a misalignment between culture and strategy?

You strategy says one thing but your culture says another (Nokia disease).
HR doesn’t have a proactive process to incentivise the right behaviors.
Culture is an intangible that nobody actually manage.
The Values in my organisation are nice words on a wall but I don’t feel that the majority actually.

So what can you do differently tomorrow? Where should you begin?

Start by breaking down the walls separating HR from the rest of the business, and bring them closer to the heart of your strategy planning. Don’t let them be the afterthought, which you expect to ‘react’ to solve the business’ challenges once all has been said and done… Instead make them a proactive part of your core team of strategic thinkers.